Hannover Re, one of the world's leading reinsurers, has raised its profit target for 2024 and expects Group net income of around EUR2.4bn ($2.56bn) for 2025.
The full-year profit target for 2024 is now raised to around EUR2.3bn, from the original guidance level of at least EUR2.1bn. The revision is made against the backdrop of good business development and positive tax effect in the third quarter, according to Hannover Re in a statement. Achievement of this target assumes that there are no unforeseen distortions on capital markets and that large loss expenditure remains within the expectation of EUR1.825bn.
The company expects to grow its reinsurance revenue in total business by more than 5% in 2024 based on constant exchange rates.
Hannover Re anticipates a combined ratio of less than 89% in property and casualty reinsurance owing to the sustained positive market climate. Life and health reinsurance should generate a reinsurance service result of more than EUR85m in the current financial year.
The investment portfolio should continue to show moderate growth – assuming roughly stable exchange rates and interest rate levels. The return on investments under own management should reach at least 2.8%.
2025 guidance
Hannover Re anticipates group net income of around EUR2.4bn for the 2025 financial year.
“Demand for the kind of high-quality reinsurance protection offered by Hannover Re will be sustained,” said Hannover Re CEO Jean-Jacques Henchoz. “In this attractive market environment, we see profitable growth opportunities in both business groups. For the 2025 financial year, we are looking to increase earnings and revenue. Hannover Re’s long-term earnings stability and resilience remain our focus.”
First 3 quarters
In the first nine months of this year, Hannover Re generated group net income of EUR1.8bn. Reinsurance revenue (gross) grew by 6.4% to EUR19.7bn (previous year: EUR 18.5bn). Growth of 7.0% would have been booked at unchanged exchange rates.
“In the first nine months of the year, Hannover Re continued to chart its successful course. Thanks to the adequate pricing level in property and casualty reinsurance, we are able to achieve a satisfactory level of earnings that puts us in a position to offer reliable reinsurance protection going forward, as we have in the past,” said Mr Henchoz. “The destruction left behind by Hurricanes Helene and Milton serves as a reminder that hurricane season is not yet over. Nevertheless, we are still very much on the right track and feel optimally positioned for the remaining months, and we are therefore raising our full-year profit target.”